Over the past few years, you have consistently heard the term ‘blockchain technology,’ probably about cryptocurrencies, like Bitcoin. If you are new to Blockchain, this is the right platform to earn solid foundational knowledge. As Blockchain grows and becomes more user-friendly, the onus is on you to learn this evolving technology to be ready for the future. In this article, you learn, “what is blockchain technology?” why it’s important, and how you can use this field to grow your career.

What Is Blockchain Technology?

Blockchain technology is a structure that holds transactional records, also known as the block, of the public in many databases, known as the “chain,” in a network linked through peer-to-peer nodes. Generally, this storage is referred to as a ‘digital ledger.’

Every transaction in this ledger is approved by the owner’s digital signature, which authenticates the transaction and protects it from tampering. Thus, the information the digital catalog contains is highly secure.

In simpler terms, the digital ledger is like a Google spreadsheet shared among several computers in a network, in which the transactional records are stored based on real purchases. The intriguing angle is that anybody can see the data, but they can’t corrupt it.

Why is Blockchain Popular?

Suppose you transfer money to your family or friends from your bank account. You would log in to online banking and transfer the payment to the other person using their account number. After the transaction, your bank updates the transaction records. It seems simple enough, right? There is a potential issue that most of us neglect.

These kinds of transactions can be tampered with very fast. People acquainted with this truth are usually wary of using these types of transactions, thus the evolution of third-party payment applications in current years. But this vulnerability is basically why Blockchain technology was created.

Technologically, Blockchain is a digital ledger that has recently earned much attention and traction. Most people think Blockchain and Bitcoin can be used interchangeably, but that’s not the case in reality. Blockchain is the technology capable of supporting different applications related to numerous industries like finance, manufacturing, supply chain, etc., but Bitcoin is a currency that relies on Blockchain technology to be safe. Blockchain is an emerging technology with several benefits in an increasingly digital world:

Highly Secure

It uses a digital signature component to conduct fraud-free transactions, making it impossible to corrupt or change an individual’s data by the other users without a precise digital signature.

Decentralized System

Conventionally, you need the consent of regulatory authorities like a government or bank for transactions; yet, with Blockchain, transactions are done with the mutual consensus of users resulting in safer, smoother, and faster transactions.

Automation Capability

It is programmable and can automatically develop recurring events, actions, and payments when the trigger criteria are met.